VAT & import Duty - DHL threatening letter

stinky_docker

Hope Someone might help.

A number of months ago I bought a watch from a french manufacturer (Depancel) who duly sent the item to my home and it was received as advertised.

Now some weeks later I have received a letter from DHL demanding I pay import Duty & VAT. The letter states the sum requested is "levied by HM Revenue & Customs and as the recipient of the goods, and with the sender not having nominated to pay the required duty you are liable for these charges".

Now when I placed the order and checking the terms of sale the following is stated by the company:

4.1 The price of each product is the price indicated on the Website for the corresponding product, unless there is an obvious error. VAT at the currently applicable rate is included in the prices indicated. Any change in the applicable rate may be passed on to the price of the products. Prices are subject to change at any time. However, the applicable prices are those in force on the day and at the time you validate your order.

4.2 Delivery costs are not included in the price, unless otherwise stated on the Website. In any event, the contribution to delivery costs is indicated separately. The unit prices and the contribution to delivery costs will again be indicated separately, in particular on the electronic order confirmation message, as will the total price. We are not obliged to deliver a product to you at the wrong price if the price error is obvious and you could easily have detected the fact that the price indicated was wrong. If this is the case, we will contact you before the product is delivered.

From my point of view once I paid for the sale and received the goods the transaction and all costs are finalised. The duty (extra or otherwise) should've been stated then, the agreement between DHL and Depancel didn't involve me, I have agreed to no additional costs and only accept the costs i paid at sale.

Now DHL are threatening to pass this bill to a debt collection agency for further action, seems a bit nuclear, any advice on how to proceed or what to say to DHL...?

Sandtree

Have you spoken to the sender?

My guess is that you have mistaken 4.1 and it is referring to French VAT and not UK or any other country given they ship globally. 

user1977

No, it's up to you as the importer to be aware of the import duties you need to pay to HMRC (and which DHL have paid on your behalf), it's not for a French retailer to advise you about those. This is all normal, even if you weren't aware of it.

stinky_docker

I've just read there website terms, FAQ and others, my invoice also states shipping charges and tax charges. I've not spoken to them and feel as any taxes should've been applied (my deliver address did state UK) I should be directing DHL back to the seller.

Also the item value was equivalent 630 Euros yet DHL are demanding £112, HM Revenue & Customs states up-to £630 value duty is 2.5% or £13...?

stinky_docker

Further to this I've just found this part on the website:

"What is the price of the shipping costs for a delivery abroad or in the DOM-TOM?

We make deliveries all over the world. For deliveries abroad and in the DOM-TOM, the shipping costs will be calculated at the time of purchase of your Depancel."

I appreciate duties are applied but the terms of sale seem to read that they should've been applied at the point of sale..?

user1977

stinky_docker said:

Further to this I've just found this part on the website:

"What is the price of the shipping costs for a delivery abroad or in the DOM-TOM?

We make deliveries all over the world. For deliveries abroad and in the DOM-TOM, the shipping costs will be calculated at the time of purchase of your Depancel."

I appreciate duties are applied but the terms of sale seem to read that they should've been applied at the point of sale..

Duties aren't a "shipping cost". The shipping cost is the cost of transporting the item to you.

Aylesbury_Duck

There is no redirecting to the retailer, you are the importer and DHL have paid whatever import duties were levied.  You now owe DHL.

Their charges will reflect whatever was levied, plus a handling fee of some sort.

You may not have agreed to additional costs at the point of sale, but you're liable for any import costs that arise.

If the charges have been applied erroneously by HMRC, you can claim back any difference, but that doesn't affect the legitimate charges DHL are passing to you.  If you don't pay them, they will probably increase, and DHL will pursue it.

stinky_docker

user1977 said:

stinky_docker said:

Further to this I've just found this part on the website:

"What is the price of the shipping costs for a delivery abroad or in the DOM-TOM?

We make deliveries all over the world. For deliveries abroad and in the DOM-TOM, the shipping costs will be calculated at the time of purchase of your Depancel."

I appreciate duties are applied but the terms of sale seem to read that they should've been applied at the point of sale..

Duties aren't a "shipping cost". The shipping cost is the cost of transporting the item to you.

Ok, would the rate therefore seem appropriate, an item costing barely £500 has seen DHl demand £112 in duty costs

Sandtree

stinky_docker said:

I've just read there website terms, FAQ and others, my invoice also states shipping charges and tax charges. I've not spoken to them and feel as any taxes should've been applied (my deliver address did state UK) I should be directing DHL back to the seller.

Also the item value was equivalent 630 Euros yet DHL are demanding £112, HM Revenue & Customs states up-to £630 value duty is 2.5% or £13...?

And 20% VAT and their handling fee which is normally around £12-£15 minumum. Duty will only apply if it was made outside of the EU.

If you are going to get DHL off your back you are going to have to get the sender to tell them they will pony up the money... this is not the normal way taxes are dealt with as its the importer's not exporter's responsibility by default.

Shipping is not importation costs so nothing you've posted so far in any way hints at them saying they'll pay your taxes for you.

Does your invoice have a separate row for VAT or is just showing a total including VAT?

Aylesbury_Duck

stinky_docker said:

user1977 said:

stinky_docker said:

Further to this I've just found this part on the website:

"What is the price of the shipping costs for a delivery abroad or in the DOM-TOM?

We make deliveries all over the world. For deliveries abroad and in the DOM-TOM, the shipping costs will be calculated at the time of purchase of your Depancel."

I appreciate duties are applied but the terms of sale seem to read that they should've been applied at the point of sale..

Duties aren't a "shipping cost". The shipping cost is the cost of transporting the item to you.

Ok, would the rate therefore seem appropriate, an item costing barely £500 has seen DHl demand £112 in duty costs

Have they, though?  How is the £112 broken down?  It won't all be duty costs, I suspect.

stinky_docker

Ok fair enough seems I'm liable in this instance then, thanks for the advice all